“The Employee Free Choice Act” is a piece of legislation that will be signed into law by the new administration resulting in union organization on a scale we haven’t seen since the 1930’s. Key provisions of the act include:

• The elimination of secret ballot elections regardless of whether or not employees want union representation
• Signed authorization cards, which are often obtained fraudulently, will be accepted as valid by the National Labor Relations Board
• Contract negotiations must begin within ten days after the union acquires a simple majority of signed authorization cards
• $20k fine for each employee-rights violation
• Government mediators will negotiate labor contracts if the company and union fail to ratify an agreement within 120 days
• A second piece of legislation called the “Respect Act” mandates that first-line supervisors must be included in the union bargaining unit
• The economic recession and resulting layoffs gives organized labor an even greater advantage

Bad news for businesses

The consequences of this law will be catastrophic for many American businesses. Contract negotiations will be one-sided because companies cannot risk turning negotiations over to a federal mediator. According to the Bureau of Labor Statistics, labor costs will increase 25% - 40% assuming no increase in pay and benefits. Onerous work practices and rules will make process improvements difficult. Grievances and arbitrations will become constant distractions and strikes will shut businesses down because companies will not be able to hire replacement workers. The act will result in American businesses being less competitive globally and accelerate jobs moving offshore.

Sound unbelievable? President Obama and Vice President Biden coauthored the bill. It has already passed the Congress. Organized labor invested $450M in the Obama campaign and Democrats have 60+ solid votes (filibuster-proof) in support of the act. The AFL-CIO has a war chest of $14M dedicated to passage of the act. What’s more, the Democrats, organized labor, and the media have done an excellent job of keeping all of this quiet throughout the campaign. It will likely be voted into law during the first quarter of 2009 and most businesses will be unaware of it until it’s too late.

And now the good news

It is possible to “union-proof” any organization by taking the right steps, right now to create a highly positive work environment that renders unions irrelevant. We have a team of very talented experts averaging over 25 years of experience in union avoidance and labor relations.